Is the Crypto Market Recovering?

The crypto market has once again demonstrated its resilience, posting impressive gains despite persistent global instability. 

After a turbulent week driven by geopolitical tension in the Middle East, cryptocurrencies like Bitcoin, Ethereum, and Solana have rebounded sharply, raising the question: Is the crypto market truly recovering?

With the total crypto market capitalization increasing to $3.52 trillion and major tokens gaining momentum, investor confidence seems to be making a cautious comeback. 

This article explores the current conditions of the crypto markets, the influence of geopolitical and economic developments, and what investors can expect in the days ahead.

A Green Start to the Week

The crypto market began this week with a strong rally. As of June 17, 2025:

• Bitcoin (BTC) rose 3%, trading at $108,400,
  
   
• Ethereum (ETH) gained 4%, reaching $2,652,
  
   
• Solana (SOL) climbed 4% to $158,
  
   
• XRP posted a notable 7% gain to $2.32.

In total, the cryptocurrency market cap grew by 1.1% in the last 24 hours. This surge was accompanied by a wave of leveraged liquidations—amounting to $245 million—with BTC and ETH accounting for $76 million and $75 million respectively, according to CoinGlass.

The rebound signals renewed interest in digital assets, especially as traditional investors reassess the global risk environment.

Read More: Iran Israel War Impact on Crypto

Market Recovery Amid Middle East Tensions

Much of last week’s decline in crypto and equity markets was attributed to escalating conflict between Israel and Iran, which led to fears of a wider regional war. However, current developments suggest that tensions are not spreading beyond the involved parties.

According to Tracy Jin, COO of crypto exchange MEXC:

“The crypto market is starting to calm down after the recent geopolitical tension... With no regional spillover and financial markets stabilizing, risk appetite is back.”

U.S. Presidential administration confirmed that it does not intend to escalate U.S. military involvement, which further soothed market concerns.

This political de-escalation has restored some degree of investor confidence, a vital component for the health of crypto markets. Though uncertainty remains, the containment of regional conflict is seen as a short-term bullish signal for digital assets.

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Bitcoin ETF Inflows Show Renewed Interest

Investor interest was further supported by significant inflows into U.S. spot Bitcoin ETFs, which recorded $301 million in new investments on June 13 alone. 

This contrasts with Ethereum spot ETFs, which experienced $2 million in outflows during the same period, according to SoSoValue data.

The ETF data suggests that institutional investors are still betting on Bitcoin as a long-term store of value, even amid macroeconomic uncertainties.

The Federal Reserve: A Key Risk Factor

While geopolitical fears are subsiding, all eyes are now on the upcoming Federal Reserve interest rate decision set for June 18, 2025.

Mena Theodorou, co-founder of Coinstash, noted:

“Markets anticipate that interest rates will remain unchanged. However, any unexpected decisions could significantly impact crypto markets.”

As per the CME FedWatch Tool, there is a 99.8% probability that the Fed will hold rates steady, but speculation remains around whether a surprise rate cut could push Bitcoin past its current resistance level of $109,000—potentially testing its all-time high of $111,970.

The connection between monetary policy and crypto performance remains tight. Lower rates typically encourage more risk-on behavior, which bodes well for speculative assets like cryptocurrencies.

Read also : Iran vs Israel conflict peaks, JPMorgan warns of oil price shock

Sentiment Still Cautious but Improving

Despite gains, investor sentiment remains cautious. Volatility metrics are still elevated, and altcoin trading volumes haven’t fully recovered. Some analysts argue that this week’s rally may be a short-term relief bounce rather than the start of a sustained bull run.

However, signs of recovery are clear:

• Renewed ETF inflows,
  
   
• Stabilized geopolitical headlines,
  
   
• Resilient performance of key Layer-1 tokens,
  
   
• Rebound in decentralized finance (DeFi) and NFT trading volumes.

All of these point toward a gradually stabilizing environment, though full recovery will depend on broader market trends and Federal Reserve policy decisions in the weeks ahead.

Read more: Trump’s Dilemma: 3 Critical Options for Handling Iran’s Threat

Conclusion: A Tentative Turnaround

So, is the crypto market recovering? The answer: Yes, but cautiously.

While last week’s sharp declines caused concern, this week’s rebound has shown the strength of investor conviction and the underlying demand for digital assets. Market conditions have improved, but significant macroeconomic and geopolitical risks still linger.

If the Federal Reserve holds rates steady, and no new geopolitical shocks emerge, the crypto market could be poised for further upside—possibly pushing Bitcoin and Ethereum closer to their previous highs.

FAQ

Is the crypto market recovering now?

Yes, major cryptocurrencies like Bitcoin, Ethereum, and Solana are showing signs of recovery, with prices increasing in the past 24 hours. However, the rebound is cautious due to lingering geopolitical and economic concerns.

What caused the recent crypto market rebound?

The rebound was driven by:

• Reduced tensions in the Middle East,
  
   
• Strong ETF inflows for Bitcoin,
  
   
• Speculation around the upcoming Federal Reserve interest rate decision.
  
   

How has Bitcoin responded to the recovery?

Bitcoin (BTC) has gained 3%, currently trading at $108,400. Investor interest is returning, especially through spot ETFs, which recorded $301 million in inflows on June 13.

What is the crypto market capitalization today?

As of June 17, 2025, the total crypto market cap stands at $3.52 trillion, up 1.1% over the past 24 hours.

What to expect from the Federal Reserve meeting?

Markets predict that the Fed will hold interest rates steady. However, if a surprise rate cut occurs, it could significantly boost risk assets like Bitcoin and Ethereum.